NACFB becomes Asset Finance Connect Corporate Member

We are pleased to announce that the National Association of Commercial Finance Brokers (NACFB) has joined Asset Finance Connect (AFC) as a Corporate Member.

Edward Peck, CEO of Asset Finance Connect commented, “Asset Finance Connect provides a forum for debate for all participants in the asset finance ecosystem including brokers and lenders. AFC’s role is to enable open discussion – frequently tackling issues that some may find difficult to discuss – issues which otherwise might inhibit growth and the continued evolution of the industry. Through debate we hope to spark ideas, fuel innovation and increase member profits.

“Key elements in these discussion include how the industry should transform to better meet the changing needs and expectations of its customers; how it can pragmatically respond to increasing levels of costly regulation and compliance; how it can use technology to enhance the value it delivers (and how it can respond to technology-powered competitors); and how it can raise awareness of its value to its various publics including SMEs, regulators and crucially UK government.

“We very much welcome the engagement of all the trade associations in our events – and we are particularly pleased to engage with the NACFB as we become NACFB partners and they AFC corporate members. The associations all have an important role to play representing not only their members’ short term and immediate interests but also their longer-term interest through the building of an efficient and well organised marketplace. That means genuine and deep engagement with each other in real collaboration which will help the industry as whole win through.

“The industry in turn will evolve so that it continues to be relevant in a changing marketplace ensuring that we can continue to meet the needs of important groups like SMEs even when other types of funders appetite or ability to lend is low. The industry is demonstrating this strength right now when the economic outlook is uncertain. Recent British Business Bank data shows that asset finance has increased its lending year to date by 17.9% compared to bank lending which has reduced by 3.7% and equity funding which has reduced by 63%.”

Launched in 1992, the National Association of Commercial Finance Brokers (NACFB) is the UK’s largest independent trade body for commercial finance brokers. The Association comprises more than 2,000 commercial finance brokers covering the whole of the UK, and more than 160 commercial lenders. In 2022 alone, the trade body’s Members – 35% of which conduct primarily asset and leasing led transactions – originated more than £45 billion of SME lending.

Highlighting the benefits of joining Asset Finance Connect as a corporate member, Norman Chambers, Managing Director of the NACFB commented: “The NACFB’s core values of improving access to finance for the SME community with positive outcomes through brokers and collaboration with lenders and funders is very closely aligned with Asset Finance Connect.”

Chambers notes that “Brokers need lenders, and lenders need brokers” when discussing the essential collaboration that is needed in the industry between lenders, brokers, and trade bodies.

In the current economic climate, Norman sees many issues affecting the asset finance industry, in general, and brokers, more specifically, including challenging third-party invoicing; difficulty for smaller brokers accessing lender panels; keeping on top of increasing regulation including the new Consumer Duty; over onerous clauses on lender/broker agreements; lack of consistent clarity over lending criteria from funders; and increasing difficulties in providing finance to sole traders who wish not to be incorporated.

Technology has been seen by many as a real gamechanger in addressing challenges faced by the broker-lender channel. Chambers notes that: “The asset community is already embracing technology and the NACFB will always back technology that enhances and supports the role of the broker. The bigger challenge is to ensure the SME is provided with the right solution ensuring fair value and a good outcome.”

Chambers continues: “I remain unconvinced there is a solution out there at present that satisfies this to be achieved in a compliant way. Only by collaborating with funders and third parties will we achieve this.”

With the explosion of AI technology in the financial services industry, Chambers is fearful that the use of such technology would take away the human relationship side of the broker business, with the broker “adding so much more value” than technology.